Bihar Government Plans Major Land Registry Revisions to Align Prices with Market, Boost Revenue for Development Projects

The Bihar government is set to make important changes to land registration rates after many years. This review of the circle rate, which determines land prices, comes from the Prohibition, Excise and Registration Department. They have asked local committees to provide detailed reports, indicating that land prices will be adjusted to match the actual market rates.

Currently, the existing circle rates are outdated and do not reflect the real estate market. Over the past decade, many rural areas have been developed into urban spaces, yet the registration rates have remained the same. This situation has led to a significant loss of revenue for the state, prompting the government to take action now.

In the coming changes, the District Valuation Committees, led by the District Magistrate, will establish new prices for land in various areas. The final approval for these new rates will come from the state government. As for the last updates, the circle rates were raised in urban areas back in 2016 and in rural areas in 2013.

Another change that will affect buyers is the increase in stamp duty and registration fees. Previously, buyers paid about 5-6% of the property value in fees, but this could rise to 7-8% soon. For instance, if a property costs ₹1 crore, the buyer may face an extra burden of ₹2 lakh starting from January 1, 2025.

This move is expected to generate additional government revenue of up to ₹5,000 crore, which will support various development projects. While there may be some relief for specific groups like women and farmers, the overall impact on the public is significant. The changes are seen as a heavy financial load on regular buyers and may slow down the real estate market.